Contxto – The newest corporation teleporting itself into the VC realm is Grupo Consorcio. Last week, the Chilean insurance firm revealed its CVC fund with a reported budget of up to US$20 million to invest over the next four to five years. This amount could increase if more corporate partners join the initiative.
More money into the mix!
Consorcio hopes to fund early-stage fintech as well as insurtech verticals with high growth potential. Each respective opportunity would receive between US$1 and US$5 million tickets based on the startups’ different needs, stages and solutions.
By the end of the year, Consorcio will reportedly invest in four Latin American firms. Reports say these startups will be from Chile, Mexico, Peru, as well as Colombia.
Easy access to mobile technology has allowed more regional startups to develop innovations and promote financial inclusion. This is according to Tomás Zavala, Consorcio’s corporate development manager. With so many entrepreneurs developing solutions, his company wants to collaborate with smaller enterprises while adapting to evolving industries.
“By investing directly in exceptional entrepreneurs and innovative companies, we can improve access to trends and ideas that are changing the industry, as well as find sources of future growth and collaborate in the scalability and expansion of these companies,” said Zaval.
Fintech fever
There’s no denying that fintech is trending. Whether or not all of the hype fades away, last month Grupo Consorcio invested US$500,000 in PagoFácil before the announcement of the CVC.
The investment in PagoFácil is the initial kick in the process of promotion and development in the fintech and insurtech worlds through collaborative work with startups and direct investment.
Tomás Zavala, Consorcio’s corporate development manager
With over 4,000 customers, Consorcio saw vast potential in the Chilean fintech based on how it simplifies online payments. All the while, the insurance group wanted to satisfy the changing needs of its customers. This is part of the company’s strategy to provide its clients with new technological tools.
“The company is in the process of transformation,” said Zavala. “Our obsession is to meet the needs of our customers, deliver the best experience and customize the service we give them.”
Corporate Venture Capital (CVC) funds invested over US$50 billion worldwide in over 2,740 transactions in 2018. With this type of capital, startups can better test products, make strategic partnerships, as well as connect with industry experts. Ultimately, this kind of assistance can help boost sales.
Corporate venture arms are definitely a rising trend. Many are trying to be just as agile as traditional VC funds when it comes to aiding startups and leveraging them for their own profitability and growth.
-JA
